The Consolidation phase in crypto, stocks, or any type of trading, is a term used when stocks appear to neither go up or down in a clear pattern. Instead, the pattern goes somewhat sideways (horizontal), with the ups and downs offsetting each other.
![Screenshot of a consolidation phase in the Bitcoin market Screenshot of a consolidation phase in the Bitcoin market](/static/9e0fb229c340e567c1916da9125f33bf/4d3f1/bybit-consolidation-phase-bitcoin.png)
In these consolidation phases, stocks are traded within a narrow range, for example, $900 to $950 which makes it hard to make a significant profit on trades (unless your investment is big), compared to normal phases, where prices could swing much more, for example, $800 to $1200 within 24 hours.